Question

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January Sales totaled units

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January. Sales totaled 300 units. Beginning Inventory Purchase Purchase Date January 1 January 15 January 24 Units Unit Cost 200 $ 70 340 80 260 100 Total Cost $14,000 27,200 26,000

Answer 1

Solution 1:

Nos of units available for sale = 200 + 340 + 260 = 800 units

Cost of goods available for sale = $14,000 + $27,200 + $26,000 = $67,200

Solution 2:

Units in ending inventory = Units available for sale - Units sold = 800 - 300 = 500 units

Solution 3:

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	200	$70.00	$14,000	200	$70.00	$14,000.00	0	$70.00	$0.00
Purchases:
15-Jan	340	$80.00	$27,200	100	$80.00	$8,000.00	240	$80.00	$19,200.00
24-Jan	260	$100.00	$26,000	0	$100.00	$0.00	260	$100.00	$26,000.00
Total	800		$67,200	300		$22,000.00	500		$45,200.00

Computation of COGS and ending inventory - Periodic LIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	200	$70.00	$14,000	0	$70.00	$0.00	200	$70.00	$14,000.00
Purchases:
15-Jan	340	$80.00	$27,200	40	$80.00	$3,200.00	300	$80.00	$24,000.00
24-Jan	260	$100.00	$26,000	260	$100.00	$26,000.00	0	$100.00	$0.00
Total	800		$67,200	300		$29,200.00	500		$38,000.00

Computation of COGS and ending inventory - Periodic Weighted Average cost method
Particulars	Cost of goods available for sale			Cost of goods sold - Average cost			Ending Inventory - Average cost
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	200	$70.00	$14,000
Purchases:
15-Jan	340	$80.00	$27,200
24-Jan	260	$100.00	$26,000
Total	800	$84.00	$67,200	300	$84.00	$25,200	500	$84.00	$42,000